NACCC Newsletter

National Association of Certified Credit Counselors

Volume 1, Issue 3

Judging from responses and recent news items, it appears that, three months after the new bankruptcy legislation went in effect, counselors are facing some desperate consumer scenarios.  A high percentage of these consumers going through the pre-bankruptcy counseling will not qualify for a debt management plan. Early into the 90-minute sessions, counselors are realizing that bankruptcy is probably their only option.  Then what?

 

The decision to go ahead with a bankruptcy petition is really not the end of the conversation.  It merely points the client and the counselor in a different direction.  That different direction is filled with new questions that counselors may not have been faced with before like, “How do I re-establish credit after bankruptcy?” or “What if I have to file a Chapter 13?”

 

Now more than ever, counselors need up-to-date resources for themselves and their clients to access.  One new resource for consumer information is a website created by the Financial Services Roundtable at www.findbankruptcyhelpnow.com.  Key content areas include “Fast facts on bankruptcy for consumers”, “Frequently asked questions regarding bankruptcy”, and “What to expect from a credit counselor.”  You may also want to check their list of DOJ approved agencies to see if your status is correct.

 

Also, the Institute for Financial Counseling is announcing a new continuing education program, Bankruptcy and the Financial Counselor, available to order at www.ifcinternational.org. This program takes counselors through the processes and pitfalls of both Chapter 7 and Chapter 13 bankruptcies as well as an in depth look at the new law and the new type of clients that credit counselors are facing today.

 

So, it’s little wonder that this edition of our online newsletter focuses on personal bankruptcy.  We sincerely hope the articles included here help you to gain insight into the bankruptcy issue.

Letter from the Editor

Preliminary results from our Nationwide Agency Survey indicate that information about the new bankruptcy legislation is the number one topic of interest for on-going credit counselor education.  Many of our respondents suggested programs and updates specifically about the legislation and how to help the new “pre-bankrupts” understand the process and paperwork for filing bankruptcy.

 

Several of you mirrored the guidelines for pre-bankruptcy counseling by requesting specific information on the reasons behind bankruptcy filings and the alternatives available to the consumer.  Some asked, “What social services are available for people facing bankruptcy?”

Quote

“Back in colonial days, debtors were treated worst than thieves.  In prison, they had to foot the bill for their own food and heat, or else go without.  In 1798, when yellow fever swept Philadelphia, all prisoners from city jails were evacuated to safety – all, that is, but the deadbeats.”

                                    

-- Bernard Condon, Forbes